Finding Text
2024 – 001 – HCVP Housing Quality Standards and Enforcement
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Voucher Cluster
Assistance Listing Number: 14.871 / 14.879
Federal Award Identification Number and Year: MD004 (various funding increments active during period 7/1/23-6/30/24)
Award Period: July 1, 2023 through June 30, 2024
Type of Finding:
-Material Weakness in Internal Control over Compliance.
-Material Noncompliance (Modified Opinion)
Criteria: PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. (24 CFR sections 982.158(d) and 982.404).
PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)).
Condition: During our testing, we noted the Commission did not have adequate internal controls designed to ensure that HQS requirements were being met. As a result, inspections were not completed timely or at all.
Questioned Costs: $34,388
Context:
Testing of 60 HCVP tenant files for failed inspection standards revealed the following:
-4 files where abatement ought to have been implemented, but records could not be located.
-11 instances where the authority did not perform the second inspection within 30 days
Testing of 60 HCVP tenant files for annual inspection standards revealed the following:
-43 instances where the annual inspection was not performed in a timely manner and the Comision failed to enforce the regulations
Cause: The Authority does not have controls in place to ensure it’s meeting HQS requirements set by HUD.
Effect: The Commission is not in compliance with program requirements over HQS inspections.
Repeat Finding: Yes.
Recommendation: The Commission should implement processes to ensure that all proper documentation is being maintained for inspections of tenant residences.
View of Responsible Officials: There is no disagreement with the audit finding.